Correlation Between Jat Holdings and Nations Trust
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By analyzing existing cross correlation between Jat Holdings PLC and Nations Trust Bank, you can compare the effects of market volatilities on Jat Holdings and Nations Trust and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jat Holdings with a short position of Nations Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jat Holdings and Nations Trust.
Diversification Opportunities for Jat Holdings and Nations Trust
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jat and Nations is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jat Holdings PLC and Nations Trust Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nations Trust Bank and Jat Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jat Holdings PLC are associated (or correlated) with Nations Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nations Trust Bank has no effect on the direction of Jat Holdings i.e., Jat Holdings and Nations Trust go up and down completely randomly.
Pair Corralation between Jat Holdings and Nations Trust
Assuming the 90 days trading horizon Jat Holdings is expected to generate 1.12 times less return on investment than Nations Trust. In addition to that, Jat Holdings is 1.5 times more volatile than Nations Trust Bank. It trades about 0.21 of its total potential returns per unit of risk. Nations Trust Bank is currently generating about 0.36 per unit of volatility. If you would invest 13,825 in Nations Trust Bank on September 2, 2024 and sell it today you would earn a total of 1,425 from holding Nations Trust Bank or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jat Holdings PLC vs. Nations Trust Bank
Performance |
| Timeline |
| Jat Holdings PLC |
| Nations Trust Bank |
Jat Holdings and Nations Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jat Holdings and Nations Trust
The main advantage of trading using opposite Jat Holdings and Nations Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jat Holdings position performs unexpectedly, Nations Trust can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nations Trust will offset losses from the drop in Nations Trust's long position.| Jat Holdings vs. Prime Lands Residencies | Jat Holdings vs. VIDULLANKA PLC | Jat Holdings vs. EX PACK RUGATED CARTONS |
| Nations Trust vs. Prime Lands Residencies | Nations Trust vs. VIDULLANKA PLC | Nations Trust vs. EX PACK RUGATED CARTONS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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